Share-Based Compensation

3 Months Ended

Mar. 31, 2016

NOTE 6 – Share-Based Compensation

The table below sets forth the line items where share-based compensation expense was recorded for the three months ended March 31, 2016 and 2015:

	Three Months Ended
	March 31,
	2016		2015
Cost of goods sold	$	201	$	123
Selling, general and administrative		3,704		3,205
Research and development		614		352
Total share-based compensation expense	$	4,519	$	3,680

Stock Options. Stock options generally vest in equal annual installments over a four-year period and expire eight years after the grant date. Stock option expense was estimated on the date of grant using the Black-Scholes-Merton option pricing model.

There were no cash proceeds received from stock option exercises during the three months ended March 31, 2016. Stock option expense was approximately $0.5 million and $1.0 million for the three months ended March 31, 2016 and 2015, respectively.

The table below sets forth a summary of stock option activity for the three months ended March 31, 2016:

Stock Options	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2016		2,063	$	23.03		3.9	$	4,111
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited or expired		-		-		-		-
Outstanding at March 31, 2016		2,063	$	23.03		3.7	$	1,777
Exercisable at March 31, 2016		1,776	$	22.82		3.3	$	1,714

The aggregate intrinsic value in the table above is before applicable income taxes and represents the amount option holders would have received if all options had been exercised on the last business day of the period indicated, based on our closing stock price.

As of March 31, 2016, total unrecognized share-based compensation expense related to unvested stock options, net of estimated forfeitures, was approximately $2.2 million, before income taxes, and is expected to be recognized over a weighted average period of approximately one year.

Share Grants. Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period.

Share grant expense for the three months ended March 31, 2016 and 2015 was approximately $4.0 million and $3.0 million, respectively.

The table below sets forth a summary of restricted stock awards and restricted stock units for the three months ended March 31, 2016:

Share Grants	Shares			Weighted Average Grant-Date Fair Value		Aggregate Intrinsic Value
Non-vested at January 1, 2016		2,679		$	23.51	$	61,247
Granted		1			22.30		-
Vested		(263	)		20.73		5,477
Forfeited		(34	)		22.88		-
Non-vested at March 31, 2016		2,383		$	22.95	$	47,900

As of March 31, 2016, total unrecognized share-based compensation expense related to non-vested restricted stock awards and restricted stock units, net of estimated forfeitures, was approximately $31.1 million, before income taxes, and is expected to be recognized over a weighted average period of approximately three years.